CHAPTER 15:

DISTRIBUTION

FIGURES
 Figure 15.2 The costs and benefits of formal education

S
Income earned

L L+T
0 Age

Direct cost Net cost of education

of education
Consumer satisfaction
 Figure 15.3 Economic Discrimination

DE

D0
Wage rate

Wage rate
Quantity of labour Quantity of labour

[i]. Elite market [E] [ii]. Ordinary market [O]

 Figure 15.3 Economic Discrimination

DE S0

D0
Wage rate

SE

Wage rate
E0

E0 w0

w0

q1 q0 q0

Quantity of labour Quantity of labour

[i]. Elite market [E] [ii]. Ordinary market [O]

 Figure 15.3 Economic Discrimination

DE S’E S0

D0 S’0
Wage rate

E1 SE

Wage rate
w1 E0

E0 w0
E1
w0
w2

q1 q0 q0 q2

Quantity of labour Quantity of labour

[i]. Elite market [E] [ii]. Ordinary market [O]

 Figure 15.4 A Monopolistic Facing Many Sellers

MC
S

Em

wc
Wage rate

wm

D = MRP

qm qc

Quantity of labour
 Figure 15.5 A Single Union Facing Many Employers

S
D
Wage rate

E1 x
w1

E0
w0

q1 q0 q2

Quantity of labour
 Figure 15.6 A Single Union Facing a Single Employer

MC
S

wu x
E0
Wage rate

w0
wm

MRP = D

qm q0 q2
Quantity of Labour
 Figure 15.7 Raising Wages by Restricting Supply

S0

S1
E1 x
w1
Wage rate

E0
w0

0 q1 q0 q2

Quantity of labour